How Ride Hailing Customers Create the “Shared Mobility Virtuous Cycle” for Dealers

January 17th, 2020 | by Mark Thomas, VP of Marketing and Alliances | Posted in: Across The Board

Ridehailing

According to Uber, today, there are currently more than 900,000 Uber drivers in the US. That’s an astounding number, and most importantly for dealers, as every driver needs a car.

However, people who decide to enter the ride hailing business don’t always have the best credit, leaving them unable to buy a vehicle, and therefore, unable to work. It’s a vicious cycle; however, Car as a Service allows people to break out of this and enables their productivity and money earning potential.

Shared Mobility allows people to start work with a credit card hold, and platforms can often direct finances so that Shared Mobility payments are deducted on a “pay as you earn” basis.  What this means is that as a new Uber or Lyft driver earns money, their expenses are automatically paid, thus building credit for themselves.

It also creates a whole bunch of advantages for dealers:

  1. A pool of creditworthy buyers if they choose to purchase a car later on. Many buyers who use Shared Mobility to start their ride hailing career become credit enabled in just 90 days, which easily facilitates a car purchase.
  2. Customer Loyalty. Anyone who has been helped out of a seemingly hopeless financial situation will remain very loyal. A loyal customer for life is what dealers dream about.
  3. Dealers can leverage Ride Hailing. Every dealer knows that running and crewing service shuttles are a very significant expense. Dealers can utilize their new Shared Mobility customers to do ride hailing for service customers as part of a pay-as-you-earn program, creating a benefit and loyalty cycle for everyone.
  4. Cash flow from old inventory. All dealers have had a situation where a car has sat on the lot and not sold.  Such vehicles can be put to work in a Shared Mobility fleet, generating revenue to help offset depreciation, while still being available for a buyer; and potentially, the ride hailing driver might be just that customer.

As can be seen, these are not just advantages for a dealer, but an opportunity to create a symbiotic relationship between dealer and customer that takes customers from a vicious financial cycle to a virtuous Shared Mobility cycle. It’s a big ‘win-win’ for everyone and an immediate opportunity for today that dealers can take advantage of on a Shared Mobility platform.

Author: Mark Thomas, VP of Marketing and Alliances, Ridecell

Share this